Jim Seymour chatted on AOL MarketTalk Wednesday, October 4, 2000 at 5 p.m. EDT.

OnlineHost:

Live from Seattle, WA, please welcome

Jim Seymour

, contributing editor,

TheStreet.com

. Jim can answer questions about what's happening in the technology sector. Visit Keyword: TheStreet.

Sage Lion:

It's great to have you visit with us in

MarketTalk

today Jim!

RM JSeymour:

Hello, Everyone. Glad to be here.

Question:

What do you see in the offing for Xerox, possible takeover candidate?

RM JSeymour:

Xerox is in a world of hurt right now, and it's hard to see a way out for them. So, as unthinkable as it would have been a year or two ago, I think they're prime acquisition bait.

Question:

What does NetCreations bring to Doubleclick and what are the main benefits of the deal for Doubleclick?

RM JSeymour:

That would take a long, long answer, but breifly, Doublclick has got to get on track, and I think NetCreations is a pretty good start.

Question:

How about Cambridge Tech Partners? Are they as bad off as Xerox?

RM JSeymour:

Not as bad, but they've dug themselves a pretty deep hole.

Question:

Where are on-line brokers like EGRP and NDB headed?

RM JSeymour:

I think it's pretty clear that we're going to see the same kind of consolidation in the world of on-line brokers that we've seen in financial institutions generally. I think E-Group (E-Trade) will gain from this, and will, along with Schwab and a few other be among the big winners. I should add that I'm long EGRP.

Question:

Opinion on CMGI?

RM JSeymour:

CMGI has been just too unfocused. I think they're in for a couple of years of refocusing, and will continue their current pattern of shutting-down losers.

Question:

Do you think DELL a buy now for long term? Thanks.

RM JSeymour:

I think Dell, under $30, is a killer buy. But this market is incredibly unforgiving, so you have to be willing to buy and HOLD.

Question:

Of these 4 stocks which would you pick at their current levels- GLW, CIEN, EMC or SUNW for the long term?

RM JSeymour:

SUNW is the safe choice. I'd be weary of Corning (GLW) because of it's present high evaluation, though it's a great company, in a hot market. EMC and Ciena, I'd hold off on for now.

Question:

Are you bullish on the prospects for Yahoo going forward, and are they doing anything now to bolster the company for future growth?

RM JSeymour:

Despite the current stock-price fall, I'm high on Yahoo's future. But I think they are going to stay in the doghouse on the Street until they find a way to beef-up their revenue model.

Question:

Why did AOL go up today?

RM JSeymour:

Beats me.

Question:

Do you see any problems at Cisco to cause them to stay in this trading range?

RM JSeymour:

I worry that Cisco, along with other telco-suppliers, will get hurt over the next year by a slowdown in telco's Capitol Spending. But personally, I am way long Cisco, and don't plan to sell.

TST Recommends

Question:

Thoughts on INTC and MSFT??

RM JSeymour:

The Bobbsey Twins of the Wintel duopoly are both going to be doing better over the next 2 years, but I think MSFT is these days about to start what will, looking back from about 5 years out, be an incredible surge. So that's where I'd put my money.

Question:

Your opinion on SEBL.

RM JSeymour:

I think Siebel is going to be hurt by Oracle's direct assault on it. But Tom Sieble is one of the great leaders in the enterprise software business, and I'm not worried about Sieble System's long term.

Question:

I'm amazed at the slowdown in the number of scandals and financial belly up chapt 11 horror stories, sign of the times, or an internet side effect?

RM JSeymour:

Valerie, I am, too.

Question:

Of the DRAM chip makers, who are some of the stronger players in the space?

RM JSeymour:

DRAM is a minefield right now, with over supply problems unlikely to be cured overnight. Go somewhere else.

Question:

Comments on BRCM.

RM JSeymour:

Broadcom's move today was puzzling. Long-term, a winner; right now, over priced.

Question:

Still trying to get an opinion on Affiliated Computer Services from someone! Please.

RM JSeymour:

Not on my radar.

Question:

Vodaphone has seen a steady decline over the last few months, what can they do to get back on track?

RM JSeymour:

Vodaphone seems to be unlikely to pull out of this swoon anytime soon. Lot's better places for your money right now.

Question:

Is JDSU a buy at this point or is it's P/E too high?

RM JSeymour:

JDSU is just too expensive now, I think. Besides, as an optical-component supplier com it faces some of the same risks from the telco's capital-expenditures cutbacks I mentioned a minute ago.

Question:

Would you put some money in Ariba?

RM JSeymour:

Yes I would, but only if I could buy on a deeper dip. Ariba has had some good news lately, but all the big B2Bs seem to me very expensive right now.

Question:

Harmonic (HLIT) seems to be getting hit in after hours, down from 20 to 14 now, what about this company?

RM JSeymour:

I am not near a computer right now, so I haven't seen any word about HLIT's news, nor about the after-hour's trading markdown. I am both a big fan of HLIT, and also long the name.

Question:

Do you like Palm here, or are there some underlying problems for the company?

RM JSeymour:

Palm has had some component-shortage problems, which has been limiting their ability to fill dealer's quarters. If I were to invest in a PDA company right now, I would buy HAND, especially after it's silly dip the other day, based largely on a misinterpreted AP story.

Question:

Do you agree with the Federal Reserve in that the risk of high inflation still hangs over the U.S. economy?

RM JSeymour:

Yes.

Sage Lion:

Thank you for joining us today Jim! We appreciate your insights!

RM JSeymour:

Today was a strange day, but I have to say that I am a little more optimistic than I have been for the past few weeks. I think we may have begun that long climb to a mid-4,000 year-end Nasdaq.

RM JSeymour:

I sure enjoyed it today; thanks Paul.